OREANDA-NEWS. December 29, 2010. The Office of the Federal Antimonopoly Service in the Vologda region (Vologda OFAS Russia) fined “Vologdaenergosbyt” OJSC (“Vologda Energy Suppliers”) nine million Rubles for abusing market dominance.

In April 2010, Vologda OFAS Russia received a complaint from Totemsky Electrical Engineering Service that “Vologdaenergosbyt” OJSC had unilaterally refused to execute the energy supply contract.

Vologda OFAS Russia requested “Vologdaenergosbyt” OJSC to withdraw the letter about unilateral refusal to execute the energy supply contract with Totemsky Electrical Engineering Service and restore the position that had existed prior the company unilaterally terminating the contract.

The antimonopoly body found that the Vologda energy supplier had abused its dominance on the regional electric power market and violated Part 1 Article 10 of the Federal Law “On Protection of Competition”.

“Vologdaenergosbyt” OJSC challenged the decision at Vologda Regional Arbitration Court, which on 25th November 2010 found the case for Vologda OFAS Russia.

Under Article 14.31 of the Code on Administrative Violations, Vologda OFAS Russia imposed a turnover fine upon “Vologdaenergosbyt” OJSC.

“Turnover fines can be from 1 до 15% of the income from selling goods in the market where the violation was committed. “Vologdaenergosbyt” OJSC is fined 2% due to an aggravating circumstance – repeated violations of the antimonopoly legislation. Such is the law”, explained Deputy Head of Vologda OFAS Russia, Mr. Valentin Schepelin.